American CuMo Mining acquiring historic polymetallic project in Austria
American CuMo Mining Corp. [TSXV-MLY; OTC-MLYCF] and Idaho CuMo Mining Corp. (ICMC) signed an arms-length agreement to purchase the Bleiberg zinc-germanium-lead-cadmium-fluorite mining project located in southern Austria, subject to TSX Venture Exchange approval.
The Bleiberg property comprises 116 exploration licenses totaling 6,582.4 hectares covering the western 8 km of a historically defined mineralized zone located 130 km southeast of Salzburg. It is a well-known 700-year-old mine with extensive data, numerous scientific publications, and over 1,150 km of underground workings with numerous shafts.
The mine site covers a total strike length of over 20 km of which the first 12 km have been mined historically. The project is near railway and power lines and other infrastructure. The licenses being purchased are located at the western end of the mine complex where the most recent (1993) drilling was completed. The Bleiberg mine operated from the 1300s through to 1993, when it closed as part of a larger bankruptcy of an Austrian state-owned mining conglomerate.
Historic production was about 500,000 tonnes/year, and was one of the largest germanium producers in the world while in production. Germanium is used by the semiconductor industry and in solar panels. Average mined grades were 5 to 6% zinc, 1 to 1.2% lead, and 150 to 200 parts per million (grams/tonne) germanium. The deposit also averaged 10% fluorite and 0.2% cadmium. Based on published estimates, Bleiberg has a geologic target of 13 to 50 million tonnes at grades similar to the average historic production grades.
Tterms of the agreement are issuing 20 million common shares of Idaho CuMo Mining, a U.S. based private company, representing not less than 19% of all fully diluted and outstanding stock of Idaho CuMo Mining at time of signing. Also, the issuance of 10 million shares of American CuMo Mining Corp. at CAD$0.04 per share, the closing share price on December 1, 2020 and payment of 235,000 Euros in expenses to the property vendors within 10 business days of Idaho CuMo Mining receiving initial funding of a minimum of US$2 million.
In addition, ICMC shall list its stock for trading on a United States public stock market, such as the OTCQB or OTCQX, within one year from the receipt of a minimum US$ 2 million in funding.